Protection from subsidiary liability is carried out as part of the support of the bankruptcy procedure. This is a service that is relevant for the founders and heads of the organization, the debtor's chief accountant, as well as other persons who could give instructions binding on the debtor or who are affiliated with the debtor.

In order for these persons to bear subsidiary liability, it is necessary to prove that by their illegal actions they led the enterprise entrusted to them to bankruptcy. These can be agreements concluded with their participation, acts of completed work or services signed by them, minutes of meetings of the founders, orders issued on their behalf, etc.

In order to hold managers to subsidiary liability, at least some of the following facts must be revealed:

• business operations carried out under their direct control turned out to be unprofitable
• cooperation was carried out with dubious counterparties or fictitious contracts were signed
• lack of primary documents
• transactions were discovered that were concluded solely by the CEO or one of the founders, and according to internal documents, they required prior approval of the entire composition of business owners or the board of directors
• after the actual financial insolvency of the enterprise, the head did not declare this in a timely manner
• The main prerequisite for bringing to subsidiary liability is the intentionality of actions and decisions taken, which ultimately had a fatal effect on the economic situation in business. Therefore, if it is possible to prove that errors in accounting or management were made unconsciously and did not pursue the goal of bringing the company to bankruptcy, then the management and owners have a chance to be justified by the court.

What can be taken to pay off obligations?
Appeal to the property of the defendants in a bankruptcy case occurs when the insolvency of the enterprise is officially established by the court. After specifying the amount of debt to each specific creditor, the bankruptcy estate is formed from the company's assets, which is sold at auction. The proceeds are used to pay off debts. If they are not enough, then with the attraction to subsidiary liability of the owners and managers of the insolvent enterprise, funds are withdrawn from them.

Subsidiary liability extends to many types of personal property (cash, real estate, vehicles, and more). At the same time, with subsidiary liability, it is forbidden to take away essentials and the only housing.